Georgia State Credits with Carryovers

The following Georgia credits have a defined carryforward provision: Disabled Person Home Purchase/Retrofit credit, Low/Zero Emission Vehicle credit, and Clean Energy Property credit. These credits should be claimed after credits without a carryforward provision have been claimed.

• Disabled Person Home Purchase Retrofit credit: Georgia allows a disabled individual a tax credit of up to $500 with respect to the purchase of a single-family home which contains certain "accessibility" features. The total credit cannot exceed $500. Any unused credit can only be carried forward for three years.
• Low/Zero Emission Vehicle (ZEV) credit: Georgia allows a credit of up to the lesser of 10% of the vehicle cost or $2,500 for the purchase or lease of each new low emission vehicle or up to the lesser of 20% of vehicle cost or $5,000 for the purchase or lease of a new zero emission vehicle. Any portion of the credit not used in the year the ZEV is purchased or leased may be carried over for up to five years.
• Clean Energy Property credit: Georgia provides a tax credit for the construction, purchase, or lease of clean energy property that is placed into service in Georgia between July 1, 2008 and December 31, 2012. For credits allowed through the end of 2011, excess credit may be carried forward for five years from the close of the taxable year in which the clean energy property was installed. Credits allowed for 2012, 2013 or 2014 must be taken in four equal installments over four successive taxable years beginning with the taxable year in which the credit is allowed.
• Qualified Education Expense credit: Georgia provides a tax credit for qualified educational expenses. An individual is eligible for a credit of up to $1,000 (single or head of household), $1,250 (married filing separately), or $2,500 (married filing jointly). The taxpayer must request preapproval to claim this credit. Any unused credit can only be carried forward for five years.

To ensure you receive a tax benefit for these credit carryovers, please review your prior year tax returns for any credit carryovers.

Then follow these steps to enter this information into TurboTax:

1. On the Georgia Credit Carryforwards screen, enter a description of the credit.
2. Enter the total credit amount available to you in 2010 in the Total 2010 Credit Amount.
3. Enter any unused credit in the column labeled 2011 Carryforward Credit.
4. Finally, enter the total years remaining or check the unlimited box to indicate the carry forward remaining.

Note: If you transferred your return from the 2010 TurboTax product, we will populate the table for you based on the credits in that return.

We recommend that you enter your individual and business credits as seen below:

Credits (from any year) with an unlimited carryforward provision. The following Georgia credits (from any year) have an unlimited carryforward provision:

• Georgia/Air National Guard credit: Credit for Georgia residents who are members of the National Guard or Air National Guard and, are on active duty full time in the US Armed forces, or active duty training in the US Armed forces for a period of >90 consecutive days; the credit cannot exceed the amount expended for qualified life insurance premiums nor the taxpayer’s income tax liability
• Disaster Assistance credit: Credit is equal to $500 or the actual amount of the disaster assistance, whichever is less.
• Adoption of a Foster Child credit: Credit is $2,000 per qualified foster child per taxable year, commencing with the year in which the adoption becomes final, and ending in the year in which the adopted child attains the age of 18; credit applies to adoptions occurring in taxable years on or after 1-1-2008.
• Eligible Single-Family Residence credit: Credit for a purchase of one eligible single-family residence made between 6-1-2009 and 11-20-2009, the credit amount is the lesser of 1.2% of the purchase price of the eligible single-family residence or $1,800, and the amount of the tax credit that may be claimed and allowed in a single tax year cannot exceed the less of 1/3 of the credit or the taxpayer’s income tax liability. 

To ensure you receive a tax benefit for these credit carryovers, please review your prior year tax returns for any credit carryovers.

Then follow these steps to enter this information into TurboTax:

1. On the Georgia Credit Carryforwards screen, enter a description of the credit.
2. Enter the total credit amount available to you in 2010 in the Total 2010 Credit Amount.
3. Enter any unused credit in the column labeled 2011 Carryforward Credit.
4. Finally, enter the total years remaining or check the unlimited box to indicate the carry forward remaining.

Note: If you transferred your return from the 2010 TurboTax product, we will populate the table for you based on the credits in that return.

We recommend that you enter your individual and business credits as seen below:

Below are Georgia business credits grouped based on whether and how they can be carried forward:

No Carryforward

• Code 110 - Diesel Particulate Emission Reduction Technology Equipment credit: An income tax credit is available to individuals who install diesel particulate emissions reduction technology equipment at any truck stop, depot, or other facility. The amount of the tax credit is equal to 10% of the total equipment and installation costs and is allowed for the taxable year in which the taxpayer first places the equipment in use.

Georgia Business and K-1 credits with a defined carryforward:

• Code 101 – Employer's Credit for Basic Skills Education
• Code 102 - Employer's Credit for Approved Employee Retraining: Any unused tax credit may be carried forward for 10 years from the close of the tax year in which the qualified jobs were established.
• Code 103 - Employer's Job Tax Credit: A credit claimed but not used in any taxable year may be carried forward for 10 years from the close of the taxable year in which the qualified jobs were established.
• Code 104 - Employer's Credit for Purchasing Child Care Property: The credit is claimed at the rate of 10% a year for 10 years, any unused credit may be carried forward for three years and the credit is limited to 50% of the employer’s Georgia income tax liability for the tax year, and recapture provisions apply if the property is transferred or committed to a use other than child care within 14 years after the property is placed in service.
• Code 105 - Employer's Credit for Providing or Sponsoring Child Care for Employees: The credit may not exceed 50% of the taxpayer’s total state income tax liability for the taxable year and any credit claimed but not used in any taxable year may be carried forward for five years from the close of the taxable year in which the cost of the operation was incurred.
• Code 106 – Manufacturer's Investment Tax Credit: Any unused credit may be carried forward for 10 years from the close of the taxable year in which the qualified investment property was acquired, provided that such property remains in service(years 2-11).
• Code 107 - Optional Investment Tax Credit: The credit may be claimed for 10 years, provided the qualifying property remains in service throughout that period.
• Code 108 - Qualified Transportation Credit: Any unused tax credit shall be allowed to be carried forward to apply to the taxpayer's next three succeeding years' tax liability.
• Code 109 - Low Income Housing Credit: Any unused tax credit shall be allowed to be carried forward to apply to the taxpayer's next three succeeding years' tax liability.
• Code 112 - Research Tax Credit: Any unused amount shall be allowed to be carried forward for 10 years.
• Code 113 - Headquarters Tax Credit: Credits may be carried forward for 10 years.
• Code 114 - Port Activity Tax Credit: Any unused job or investment tax credit may be carried forward for 10 years from the close of the taxable year in which the qualified jobs were established or the qualified property was placed in service.
• Code 115 - Bank Tax Credit: Any unused credit may be credited over a period of five years from the tax year in which the unused credit arose.
• Code 116 - Low Emission Vehicle Credit: Any credit claimed under this Code section but not used in any taxable year may be carried forward for five years from the close of the taxable year in which a new clean fueled vehicle was purchased or leased or a conventionally fueled vehicle was changed into a converted vehicle, provided that the applicable certification required in paragraph (1) or (2) of this subsection accompanies any such claim; and in no event shall the amount of any tax credit provided in this Code section exceed the taxpayer's income tax liability.
• Code 117 - Zero Emission Vehicle Credit : Any credit claimed under this Code section but not used in any taxable year may be carried forward for five years from the close of the taxable year in which a new clean fueled vehicle was purchased or leased or a conventionally fueled vehicle was changed into a converted vehicle, provided that the applicable certification required in paragraph (1) or (2) of this subsection accompanies any such claim; and in no event shall the amount of any tax credit provided in this Code section exceed the taxpayer's income tax liability.
• Code 118 - New Facilities Job Credit: There is a 10-year carryforward of any unused tax credit.
• Code 119 - Electric Vehicle Charger Credit: Any credit claimed under this Code section but not used in any taxable year may be carried forward for five years from the close of the taxable year in which a new clean fueled vehicle was purchased or leased or a conventionally fueled vehicle was changed into a converted vehicle, provided that the applicable certification required in paragraph (1) or (2) of this subsection accompanies any such claim.
• Code 120 - New Manufacturing Facilities Property Credit: There is a 15-year carry forward of any unused tax credit.
• Code 121 - Historic Rehabilitation Credit: Full amount of excess is used or 10 years (whichever is earlier).
• Code 122 - Film Tax Credit: A credit claimed but not used in any taxable year may be carried forward for five years from the close of the taxable year in which the investment occurred
• Code 123 – Teleworking Credit: This credit is only available for calendar years 2008 through 2011 and became effective July 1, 2007. No unused tax credit shall be allowed to be carried forward to apply to the employer's succeeding years' tax liability. No such tax credit shall be allowed the employer against prior years' tax liability.
• Code 124 - Land Conservation Credit: Any unused portion of the credit may be carried forward for five years.
• Code 125 – Qualified Education Expense Credit: Any unused tax credit shall be allowed the taxpayer against the succeeding five years' tax liability.
• Code 126 - Seed-Capital Fund Credit: The credit carryforward shall not exceed 10 years.
• Code 127 - Clean Energy Property Credit: Any unused credit amount shall be allowed to be carried forward for five years from the close of the taxable year in which the installment of the clean energy property occurred.
• Code 128 – Wood Residual Credit: Any unused credit amount shall be allowed to be carried forward for five years from the close of the taxable year in which the installment of the clean energy property occurred.
• Code 130 – Quality Jobs Tax Credit - The credit must be claimed within one year instead of the normal 3 year statute of limitation period.
• Code 131 - Alternate Port Activity Tax Credit: Any tax credit claimed under subsection (b) of this Code section but not used in any taxable year may be carried forward for ten years from the close of the taxable year in which the qualified jobs were established, provided that the increase in port traffic remains above the minimum levels established in Code Section 48-7-40 and this Code section, respectively.

Georgia Business and K-1 credits listed below having an unlimited carryforward:

• Code 111 - Business Enterprise Vehicle Credit: In no event shall the aggregate amount of the tax credit provided by this Code section exceed the income tax liability of the business enterprise; any unused tax credit shall be allowed to be carried forward to apply to the succeeding years' tax liability of such business enterprise.
• Code 129 - Qualified Health Insurance Expense Credit: Any unused tax credit shall be allowed the taxpayer against succeeding years' tax liability. 

The example below shows how to enter credits.